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I. EXECUTIVE SUMMARY

Virtual stock trading allows investors to practice buying and selling securities
without risking real money. The investor can make trades and record them by hand
to keep track of their hypothetical trading positions and portfolio. Most virtual
trading usually involves the use of a stock market simulator, which looks and feels like
an actual stock market. Its benefit is that it can be used to test a new investment
strategy before employing it in a live account without having any risk of loss and
while still providing them the information needed to refine their trading plans, styles
and techniques. It is also a good training ground for beginners and investors who
needs more knowledge in trading.

But then virtual trading may give novice investors or traders the impression
that trading is relatively easy. Further, the practice may provide a false sense of
security and often results in distorted investment returns. This nonconformity with
the real market is because paper trading does not involve the risk of real genuine
capital. Also, virtual trading allows for basic investment strategies such as buying low
and selling high, which are more challenging to adhere to in real life but are relatively
easy to achieve while paper trading.(Investopedia, 2019).

Virtual trading has been made much easier in recent years thanks to the
growing availability of online trading brokers and software that can be readily
downloaded from the Internet.
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II. INTRODUCTION

What is your expectation on this Requirement?

The expectation of the student to this requirement is to be able to understand

how trading works. The student is also expecting gains and losses of her stocks
because that is the result of trading, either a person can gain or not. In addition the
student is expecting that the learnings she gathers shall be used in this requirement
because it is also expected that trading is so hard to handle based from the people
who encounter or engage in this matter. And above all is to improve her trading
knowledge as time goes by and become productive when she will be able to engage
herself in dealing real accounts.

What is your Investment Philosophy/Strategy?

 Do a background check. One should know how a company works before

engaging in trading stocks. How capable they are and what are their current
situation in the market.
 Know the basics. It is important that someone must know what he/she is
doing so that they would not be blinded of what is happening. Ask questions
to those who have knowledge about it and read more to further understand
the activity and improve in the process.

How does your Risk Tolerance affect your buying behaviour?

The traders risk rolerance is relatively high which happens that it's fine if the
trader buy an overvalued stocks and the trader is willing to take higher risk to lose
virtual stocks in return of greater returns. This affect the investor's buying decision
because the stocks purchased by the investor are quite costly because she believes
that the more risk you take means a bigger profit and dividend to earn.
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How is the Stock market doing today, what is its current situation?

The PSEi increased 340 points or 4.54% since the beginning of 2019, according
to trading on a contract for difference (CFD) that tracks this benchmark index from
Philippines. Historically, the Philippines Stock Market (PSEi) reached an all time high
of 9078.37 in January of 2018 and a record low of 439.53 in January of 1987.(Trading
Economics, 2019). Only a few weeks ago, the PSE Index broke out of its long-term
resistance at 8,150, which sent the market to reach a 52-week high at 8,419. Just as
everyone thought that the bulls were finally back, the PSE Index started to correct
sharply, falling as much as 650 points to a low of 7,720 in less than a month.

Research on Investment Strategies and Companies

What were your initial expectations for your stocks?

The student's expectation about her stock will result to a lose because the
student only have a little background about trading and little learning of how to
interpret statistics and relate the news to the decisions in dealing with stocks. The
student still feel confuse of how it works and that the knowledge she have is still not
enough to gain back what might she lose.

Cite at least three investment strategies and describe them briefly.

 Be a value investor. This kind of investor seeks stocks they believe are
undervalued. One should look for stocks with prices they believe don't fully
reflect the intrinsic value of the stocks. The price-earning ratio has become
the primary tool for quickly identifying undervalued or cheap stocks. A lower
P/E ratio signifies you're paying less per $1 of current earnings
 Speculation. Purchasing and selling of securities in expectation of profiting by
fluctuation in the prices. In other words, speculation could be defined as the
buying and selling of securities based upon a perceived advantage in
information. One should buy rising stocks and sell falling stocks. Trade only
when the market is clearly bullish or bearish; then trade in its general
direction. And go long when stocks reach a new high, sell short when they
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reach new low in order to advocate quickly cutting losses and letting profits
run.
 Choose stocks with high dividend. "High dividend paying stocks are a really
great way to add stability to any portfolio,” says Anthony Montenegro,
founder of The Blackmont Group, a Southern California wealth management
firm. It is because dividend stocks take cover in a volatile stock market. The
dividends tgemselves provide something of a cushion. Even though the price
of the underlying stock may fall, a trader still earns a steady dividend income.

III. ANALYSIS

Purchase/Sale of stocks

Why did you choose the stocks you did? Explain how your research about the stocks
you bought, and significant amounts of your company, affected you buying decision.

The investor chooses these stocks because those company are known by the
market. The investor bought stocks from top performing companies to make sure
that it can get higher returns. Companies are the suppliers of funds that the investors
are willing to buy and sell. It also provides dividends that investors earns. The higher
the performance of the company financially the more stocks they can supply.

Would you classify your stocks as aggressive or conservative?

It is classified as an aggressive one because the trader observes that the stocks
bought was to maximize returns by taking a relatively higher degree of risk. The
trader bought was all an overvalued stocks that cost high with relatively high quantity
also. This happens because the trader wants to have higher returns but it happens to
drive higher transaction costs, thus increasing the risk of poor performance. Because
of this it is so hard to sell those srocks in just a small amount of time.

What role did the industry play in picking your stocks?

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Did any media news play a role in picking purchases?

Yes, media news play a role in picking purchases because the trader believe that
new information affects her buying and selling decisions. If Negative news will occur
it cause individuals to sell stocks. Bad earnings reports, poor corporate governance,
economic and political uncertainty, as well as unexpected, unfortunate occurrences
will translate to selling pressure and a decrease in stock price. While if positive news
happens, this cause individuals to buy such stocks.

What was your best performing stock and least performing stock and what is your
total return on investment did it provide?

The trader's best performing stock is Aboitiz Power Corporation stock because it's
return on investment is higher than the rest. While the trader's least performing
stock is the stock of PIZZA because it only have 0.7309 ROI which happens to be the
lowest ROI computed by the investor based on Table 1.0.

Did you sell any stocks during the game? If so what made you sell the stock?

Yes. It made the investor sell the stocks bacause she wants to change her
investment strategy. Even though it might cause a lose of more or less 5000 pesos, it
doesn't stop the investor to do so. But then, the trader onky sold low-priced stocks
that she owns and waited for the right time to sell high-priced stocks until it provides
a positive portfolio to gain back what the investor lose in changing the investment
strategy. It's like a little sacrifice for a better outcome.

IV. CONCLUSION AND FINDINGS

Overall Summary
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What is the overall impact of this activity to you and what are the lessons that you
learned?

It gives a positive impact beacuse the trader are able to understand the ways on
how to deal stocks. The trading shows how important it is to know your capabilities
and risk tolerance in order to align this on one's buying decisions. With this activity,
the trader are able to conceptualize how hard it is to look for multiple stocks,
observe their market performance and their updates. And the hardest of them all is
selling the stocks in just a short span of time. It really needs time and a lot of effort
for someone who are still a newbie in this matter in order for them to succeed. The
trader learned that patience is truly a virtue. Wait for the right time to buy and sell to
avoid any losses. Be observant of what is happening by doing research and just enjoy
what you are doing.

What would you do differently next time to be more successful with your
investment?

Next time the trader would definitely do some research before making any
decisions. The trader's mistake is that she only look for companies whobare known
by everyone without considering the time and the possible required return she can
get, as long as she buys something. Now the trader regret buying overvalued stocks
and not considering the companies previous performance. The trader would also
used the strategies that she have read and take trading process seriously to focus on
the objective and that is to gain profits. In addition, it is also not enough to become
an aggressive or conservative trader only, it should be both because trading is so
hard to predict. One needs to look for possible loops to win this gamble.

What did you enjoy about the project?

There are three things that the trader enjoyed in this activity. One is the
process itself. Discovering new learnings while applying it into practice makes the
trader beemed with so much joy. The trader are able to understand bearish and
bullish, used the board lot, read the charts, and of course buying and selling of
stocks. And lastly, is sharing ideas to my co-traders. Being able to share what
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someone learned and shared it to others is a big achievement to the trader. The fact
that someone is able to understand the activity gives happiness to the trader.

V. CHARTS/DIAGRAMS OF PORTFOLIO PERFORMANCEFigure 1.0 Stocks Bought

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Figure 2.0 Profit or Loss

Figure 3.0 ROI

VI. CURRICULUM VITAE

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MARNELLI GRENN D. LAGUMBAY

Purok 3 Habana, Catigan,
Toril, Davao City
09289763109
mrnllgrnn@gmail.com

EDUCATION:
Bachelor of Science in Accountancy
University of Mindanao
Expected date of Graduation: April 2022

Accountancy, Business & Management, Senior High

School
Doña Carmen Denia National High School
Date of Graduation: April 6, 2018

Junior High School

Doña Carmen Denia National High School
Date of Graduation: April 1, 2018

SKILLS:
Software Application: MS Office
Interpersonal Skills: Decision-making skills
Communication Skills
Hardworking
Time Conscious

GROUP AFFILIATIONS:
Junior Philippine Institute of Accountants
Member
June 2018
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VII. APPENDIX

Figure 4.0

STOCKS BOUGHT PROFIT/LOSS ROI

2GO PHP 3434.73 -614.28 0.8212

AP PHP 7415.13 -445.94 0.9399

EW PHP 1378.52 -350.88 0.7440

PIZZA PHP 1506.54 -405.27 0.7309

PNX PHP 2530.64 -524.01 0.7928

SBS PHP 2981.68 -319.42 0.8929

TEL PHP 5829.97 -412.83 0.9292

East West Banking Corp. Market Performance for the past three Years

PLDT's Market Performance for the past three Year

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Aboitiz Power Corporation's Market Performance for the past three Year

Company Research Worksheet

PLDT
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ABOITIZ POWER CORPORATION

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EAST
WEST BANKING CORPORATION
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VIII. References

Beers, 2019. Why do stocks prices change based on news reports. Retrieved from
https://www.investopedia.com/ask/answers/155.asp

Harper, 2019. Forces that Move Stock Prices. Retrieved from

https://www.investopedia.com/articles/basics/04/100804.asp
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Ippolito, 2015. What are the 4 Investment Strategies? Part 1. Retrieved from
https://www.therealestatecrowdfundingreview.com/what-are-the-4-investment-
strategies

Lewis, 2019. 4 types of Stock Market Investment Strategoes-Investing, Speculation,

Trading & Bogleheads. Retrieved from https://www.moneycrashers.com/types-stock-
market-investment-strategies/

Majaski, 2019. Forces that Move Stock Prices. Retrieved from

https://www.investopedia.com/articles/basics/04/100804.asp

Mitchell,2019. Finding the Right Stocks and Sectors. Retrieved from

https://www.investopedia.com/articles/trading/09/technical-top-down-sector-
stock.asp

Pak, et. al., 2015. Impact of personality on Risk Tolerance and Investment Decisions.
Retrieved from https://www.emerald.com/insight/content/doi/10.1108/IJCoMA-01-
2013-0002/full/html?mobileUi=0

Polyak, 2015. Age and Risk Tolerance Key to Mastering Asset Allocation. Retrieved
from https://www-cnbc-
com.cdn.ampproject.org/v/s/www.cnbc.com/amp/2015/06/10/age-and-risk-
tolerance-key-to-mastering-asset-allocation.html?
amp_js_v=a2&amp_gsa=1&usqp=mq331AQEKAFwAQ%3D%3D#referrer=https%3A
%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F
%2Fwww.cnbc.com%2F2015%2F06%2F10%2Fage-and-risk-tolerance-key-to-
mastering-asset-allocation.html

Rose, 2019. The 5 Best Investment Strategies in A Volatile Market. Retrieved from
https://www.forbes.com/sites/jrose/2019/06/17/the-5-best-investment-strategies-
in-a-volatile-market/amp/

Scott, 2019. Aggressive Investment Strategy. Retrieved from

https://www.investopedia.com/terms/a/aggressiveinvestmentstrategy.asp
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Taylor, 2019. Investment Strategies to Learn Before Trading. Retrieved from

https://www.investopedia.com/investing/investing-strategies/

https://www.reuters.com/finance/stocks/financial-highlights/2GO.PS

https://www.reuters.com/finance/stocks/financial-highlights/TEL.PS

https://www.reuters.com/finance/stocks/financial-highlights/ABZPY.PQ

https://www.reuters.com/finance/stocks/financial-highlights/PNX.PS

https://www.reuters.com/finance/stocks/financial-highlights/EW.PS